Announcement of Four Million US Dollars Loan to Help Development Projects in Liberia on December 4, 1974

• INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W .. WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVt: 3-6360 Bank News Release No. 74/93 December 4, 1974 $4 MILLION LOAN TO HELP DEVELOPMENT PROJECTS IN LIBERIA The World Ilank has approved a $4 million loan to the Liberian Bank for Development and Investment (LBDI) to help finance development projects in Liberia. LliDI was established in 1965 with the assistance of the International Finance Corporation, which subscribed 25% of the Bank's share capital of $1 million. This will be tne second World Bank loan to LBDI. The first loan of $1 million was made in 1972. At that time, the African Development Bank (ADB) • made a $500,000 loan. Both loans are now fully committed. LBDI has also negotiated a second loan with ADB for the equivalent of $2.5 million. These new funds and other resources will allow LilDI to ~over its require- ments through calendar 1976 -- some $11 million equivalen~ -- and to continue to exercise its res.ponsibility as the only institutional source of long-term finance for the private sector in Liberia. Its investments have gone mostly to small Liberian-spons-ored projects with about half of them export-oriented. LBDI's investments have been for projects in industry, agriculture, tourism and transport. On a minor scale, LBDI is assisting trade establishments and, within limits, public sector projects . . The World Bank loan is being made to LBDI with the guarantee of the Government of Liberia, at 8% annual interest. Repayments will conform substan- tially to repayments received by LBDI on its loans financed out of hlorld Bank • funds. - - - - ----------·--- -- - --· - -- Note: Money figures are expressed in US dollar equivalents.